European Derivatives Markets

On Wednesday, June 2, 2010, the Economic and Monetary Affairs Committee approved a resolution to toughen regulation regarding derivatives trading so as to "reduce speculative trading" and ensure that derivatives are traded openly and with uniform standards.  The resolutions propose strict rules, the restructuring of central counterparty clearing facilities, lighter regulation of over-the-counter trading if carried out by corporate end-users, and the banning of speculative credit default swap trading.

Financial Stabilization Mechanism for Europe:

On Monday, June 7, 2010, the Finance Ministers of the euro area countries established the European Financial Stability Facility (EFSF).  Together with the International Monetary Fund, the EFSF will provide loans "to cover the financing needs of euro area Member States in difficulty," while Member States will provide the EFSF with guarantees totaling 440 billion euros on a pro rata basis.  The European Investment Bank will support the EFSF both managerially and administratively.

G-20 Finance Ministers and Central Bank Governors Endorse Financial Reform

On Saturday, June 5, 2010, the G-20 Finance Ministers and Central Bank Governors issued a communiqué summarizing the recent meetings in Busan, Korea.  The Ministers reaffirmed their commitment to "secure the global recovery and address the economic challenges and risks."